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Treasury Announces $6.7 Billion Increase in Small Business Lending at Banks Receiving Capital through the Small Business Lending Fund (SBLF)

10/9/2012

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WASHINGTON – The U.S. Department of the
Treasury today released a report showing that participants receiving capital
through the Small Business Lending Fund (SBLF) continue to increase their small
business lending, in total by $6.7 billion over the baseline and by $1.5 billion
over the prior quarter. This Use of Funds report comes shortly after the first
anniversary of the Small Business Lending Fund.

The
SBLF, established as part of the Small Business Jobs Act that President Obama
signed into law in 2010, encourages community banks to increase their lending to
small businesses, helping those companies expand their operations and create new
jobs. Treasury invested more than $4.0 billion in 332 institutions through the
SBLF. Collectively, these institutions operate in over 3,000 locations across 48
states.

“Today’s report is further indication that the
Administration’s Small Business Lending Fund is continuing to help create an
environment in which entrepreneurial small businesses can succeed and excel,”
said Deputy Secretary of the Treasury Neal Wolin. “Banks in the SBLF program
continue to show large increases in the lending available for small businesses
to grow, create jobs, and support families in communities across the country.”

Small
businesses play a critical role in the U.S. economy and are central to growth
and job creation. Small businesses employ roughly one-half of all Americans and
account for about 60 percent of gross job creation. In the aftermath of the
recession and credit crisis, small business owners faced disproportionate
challenges, including difficulty accessing capital.

The
SBLF helps small businesses meet this challenge by providing capital to
community banks that hold under $10 billion in assets. The dividend rate a
community bank pays on SBLF funding is reduced as that bank increases its
lending to small businesses – providing a strong incentive for new lending to
small businesses so they can expand and create jobs.

To view
today’s report, including a detailed list of the change in lending at banks
receiving SBLF capital, please click here.

The
SBLF is one part of the Obama Administration’s comprehensive agenda to help
small businesses access the capital they need to invest and hire. Treasury also
administers the State Small Business Credit Initiative (SSBCI), which allocates
$1.5 billion to state programs designed to leverage private financing to spur
$15 billion in new lending to small businesses and small manufacturers.

For more
information on the Obama Administration’s small business initiatives, please
visit www.sba.gov.

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